Global product markets weekly: US refiners up run rates, crude markets tighten

The oil market rose last week, further extending the increases of the previous two weeks, reaching the highest weekly average for two years. North Sea Dated crude’s weekly average rose by US$1.22/bbl to US$71.17/bbl in the week to 11 June. The higher prices continued to be driven by optimism given the economic data shows western economies are recovering strongly. Wood Mackenzie’s short-term outlook expects US oil demand to return to 20 million b/d this month and crude prices rising further in July and August. Further OPEC+ production increases are likely to announced in the coming months, with prices expected to return to around current levels by the end of the year. Our global composite refining margin decreased US$0.24/bbl to US$3.98/bbl. Margins fell strongly in the Mediterranean as demand remained low, particularly in the east of the region.